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The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017 was awarded to Richard H. Thaler ''for his contributions to behavioural economics.''

Dr. Thaler (72) has incorporated psychologically realistic assumptions into analyses of economic decision-making, a media release by Royal Swedish Academy of Sciences said.

"By exploring the consequences of limited rationality, social preferences, and lack of self-control, he has shown how these human traits systematically affect individual decisions as well as market outcomes," it said.

Dr. Thaler's contributions have built a bridge between the economic and psychological analyses of individual decision-making. His empirical findings and theoretical insights have been instrumental in creating the new and rapidly expanding field of behavioural economics, which has had a profound impact on many areas of economic research and policy, it said.

Dr. Thaler is a Professor of Behavioral Science and Economics at University of Chicago Booth School of Business. He is the co-author (with Cass R. Sunstein) of the global best seller Nudge (2008) in which the concepts of behavioral economics are used to tackle many of society’s major problems.

Speaking to journalists over teleconference, Dr. Tahler said his works emphasise that economic agents are human and economic models have to incorporate that.

The Prize was first awarded in 1969, nearly seven decades after the series of prestigious prizes that Nobel called for. Despite its provenance and carefully laborious name, it is broadly considered an equal to the other Nobel and the winner attends the famed presentation banquet.

The winner will walk away with 9-million-kronor ($1.1-million) prize.

Last year, Oliver Hart and Bengt Holmström shared the prize for their contributions to contract theory.

Indian economist Amartya Sen won the Nobel in 1998 for his contributions to welfare economics.